Top 6 Binary Option Strategies that pulls profit.

Binary Options Strategy

Success in binary option trading depends entirely on how well traders can predict the price fluctuations of various assets in the market. Having a proper strategy is essential for ensuring success in binary options trading. Binary options’ trading has become highly popular because of its quick returns, ease of trading and remarkable margins. Traders who make enormous profits usually have the proper backing of a strong strategy. There are several popular strategies followed by successful traders, learning and understanding of which will help in efficient and profitable binary options trading.

Binary Options Strategy

1. Bungee option trading strategy

Binary Options Strategy

This binary options strategy might differ from trader to trader. The core concept remains the same. There can be two possible outcomes in binary options trading. It could either be a win or a loss. The high returns and quick expiry time are key features of bungee option trading strategy.

Bungee options also known as bungee bets, are fixed term and fixed payout investments. The durations of these investments are short, usually 5 min or 15 min or 1 hour. Traders keep their option open so that they can recover from short falls and make some quick gains when the market returns to a favorable position in the short term. This strategy is one of the most commonly used techniques to gain some quick profits in binary options trading. It is a simple ‘understand and execute’ strategy.

2. The 60 seconds strategy

This binary options strategy is also popular. With binary options 60 seconds, instead of waiting for an hour or so for the option to expire, traders can predict the direction to which the market will shift. They can earn the expected payout within 60 seconds and can also earn up to around 175% payouts on every trade.

This trading strategy is all about the investors balancing their sell and buy option on the under lying assets to protect their margins. In this strategy traders sell parts of the assets minutes before the expiry time if they see the price receding. However, traders keep a part still invested so that they can gain in case the price improves. With this strategy, traders are able to save a part of their initial investment and also have some of its portion on the side.

4. The reversal

This is a popular strategy with traders. This is how it works; if the price moves in a certain direction and is unlikely that it will stay at the peak, possibly even returning to the original price, the trader can quickly go for a call or put option depending upon the whether the price has gone up or down.

5. The straddle

In this strategy investors will buy put and call options for the same asset. Traders will be able to straddle the asset at its high and low points increasing their chances of getting higher returns.

6. Market pull strategy

In this strategy the trader will closely follow news reports and understand the market trends for a particular asset and act accordingly. The trader would invest in put or call based on the changes viewed in the market. For example if the trader learns a report that price of dollars is falling, he will purchase a put option of dollars. This strategy is one of the mostly used binary options strategies worldwide.

Application of these strategies should be done only after doing considerable amount of research on market behavior and fluctuations in prices of under lying assets.